Wednesday, November 22, 2017

Oil Has Hit A Floor: Buy Pullbacks: NYSE:XOM, NASDAQ:FSLR, NYSE:CVX

Oil has hit a floor and will grind higher from here on out. Why? Simply put, major oil producing nations started to act when oil hit $25 per barrel. Saudi Arabia and Russia both inked a deal that they would not produce anymore crude above what they already produce. While there will be no reduction in production, it is the first sign that these countries are breaking. Should crude get down to $25 per barrel again, look for more rhetoric from these big producers.

At this stage, there is minimal downside on oil and investors should be accumulating well capitalized oil drillers. Potential candidates are Kinder Morgan Inc (NYSE:KMI), Transocean LTD(NYSE:RIG) and of course Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX). Even alternate energy names like First Solar, Inc. (NASDAQ:FSLR) can be bought.

Gareth Soloway

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